Stuart Manufacturing Corporation was started with the issuance of common stock for $50,000. It purchased $7,700 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.)

	Direct Raw Materials Used	Direct Labor
Job 1	$ 1,500	$ 2,200
Job 2	2,300	3,900
Job 3	2,800	1,900
Total	$ 6,600	$ 8,000

Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $9,630 cash. Stuart paid $700 for selling and administrative expenses. Actual factory overhead was $5,900.

Required

a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.

c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant.

d-1. Prepare a schedule of cost of goods manufactured and sold for Year 1.

d-2. Prepare an income statement for Year 1.

d-3. Prepare a balance sheet for Year 1.